OVER HALF of eligible renters have claimed the €500 rent tax credit since it was first introduced last year.
However, as of 9 July, just over 40,000 have claimed the credit for this year, a tenth of the 400,000 people estimated to be eligible for it.
The figures were released by the Department of Finance following parliamentary questions from Sinn Féin TD Eoin Ó Broin and Fianna Fáil TD Jim O’Callaghan last week.
Announced in Budget 2023, the €500 tax credit is available to all renters who have a tenancy that is registered with the Residential Tenancies Board (RTB).
Tenants are able to claim the credit for both 2022 and 2023 by submitting an income tax return.
When it was announced, then Finance Minister Paschal Donohoe estimated that the credit would benefit around 400,000 people.
According to the latest figures, only 40,631 people have claimed the credit for 2023.
Of those, 28,054 people made claims for both 2022 and 2023, while 12,577 people made claims for 2023 only.
238,066 renters in total have claimed the credit for both 2022 and 2023.
Dublin had the highest number of claims, with 110,614 renters seeking the credit. In Cork, 25,706 claims have been made, while 16,923 claims have been made in Galway.
11,098 claims have been made in Limerick. Leitrim had the lowest number of claims at 729.
In a statement to The Journal, a spokesperson for the Department of Finance said: “The Minister for Finance has asked the Revenue to conduct an information campaign to highlight the ease of use of the online myAccount system and to raise awareness of a range of key tax credits and reliefs available to taxpayers including the rent tax credit.”
Opposition parties have previously criticised the credit and urged the Government to broaden the eligibility criteria. Last month, Social Democrats TD Cian O’Callaghan said the Government’s failure to promote the credit is contributing to low uptake.
“It is also clear that many renters cannot claim the tax credit because their landlord is not registered with the Residential Tenancies Board. This is financially penalising the renter for the failure of the landlord and highlights the need for urgent reform in how the scheme operates,” he said.
“With exorbitant rents putting families and individuals under severe financial pressure, it is important that as many people as possible avail of this relief.”
In February, Housing Minister Darragh O’Brien said that the RTB were receiving an “exceptionally high volume” of both calls and emails from tenants seeking information on their tenancy to claim the tax credit.
He said that the high volume of queries to the RTB for tenants’ registered tenancy number had lead to delayed responses from the agency.
He added that there was a backlog for responses and that the RTB was working to address the issue.
In a statement to The Journal, a spokesperson for the RTB said: “The majority of tenants who are contacting the RTB are seeking their RT (Registered Tenancy) number.
“This number is provided to all tenants at the beginning of their tenancy in the tenancy confirmation letter that tenants receive from the RTB. Our website also signposts tenants as to other ways to find this number without the need to contact RTB customer services, including contacting their landlord directly.
“The RTB has been informed by the Revenue Commissioners that, a claimant will not be prevented from making a claim for the rent tax credit if they are unable to provide their RT number when making their claim and they have taken all reasonable steps to ascertain this number.”
Tánaiste Micheál Martin said last year that the rent credit was a platform that could be built upon.
Speaking to The Journal last year, O’Brien said that Government intends to increase the credit in Budget 2024.
“€1,000 per renter, €500 for 2022 and €500 for 2023: that will make a big difference for a lot of people and I do agree completely with the Taoiseach. That’s our starting position,” he said.
“So next year because we’ve made a permanent change, not just a cost-of-living change, we will be looking to see how we can increase that rate into the future. Renters need help, we as a party understand that, and this is a significant step towards it.”
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